TechZone360

Amongst Fears in Japan, Telco Equipment Supply Added to List

From recent nuclear crisis worries to social media panic, the news of the aftermath of Japan’s earthquake is unfurling every day with more concerns for many of its resources. As a major player in telecom and auto equipment, Japan’s supply for the two industries is cause for worry amongst makers.

Despite contingency plans, the concern relies on the fact that Japan is responsible for one-fifth of the world’s semiconductor production. Friday’s earthquake has threatened supply manufacturers worldwide.

Reuters reports that companies such as Ericsson, Alcatel-Lucent and STMicroelectronics have sent warnings for supply impact, going down the same road of worry as the auto industry, as Japan is a major supply source for the auto and technology industries.

"The telecommunications industry, as well as many other industries, source components from Japan. It is reasonable to expect that the events in Japan will affect supply of components but it is too early to say to what extent," the company Ericsson said in a statement.

However, Ericsson issued a separate statement today that they do not expect the disaster to have any impact on its 1Q sales, only its supply components would be affected.

"Although it is too early to get an accurate picture of how Japanese enterprises are affected, and how this affects Ericsson and the industry, no material impact on Ericsson's sales are expected for 1Q 2011," the company said.

Despite supply threats to many tech firms, an Apple spokesperson said the delay was unrelated to any supply shortages. The company was due to launch its iPad 2 in Japan on March 25; however, the launch has been delayed indefinitely as Japan recovers from the earthquake.

"We are delaying the launch of the iPad 2 in Japan while the country and our teams focus on recovering from the recent disaster," said Natalie Kerris.

Apple has been using its iTunes store to accept donations for the American Red Cross' Japan earthquake and tsunami relief fund.

Michelle Amodio is a TechZone360 contributor. She has helped promote companies and groups in all industries, from technology to banking to professional roller derby. She holds a bachelor's degree in Writing from Endicott College and currently works in marketing, journalism, and public relations as a freelancer.